A company's cash account shows an ending balance of $ 4 comma 200. reconciling items included a bookkeeper error of $ 70 (a $ 550 check recorded as $ 620), two outstanding checks totaling $ 810, a service charge of $ 25, a deposit in transit of $ 280, and interest revenue of $ 30. what is the adjusted book balance?

The adjusted book balance is $4,275.

Explanation:

For computing the adjusted book balance, the following equation should be used which is shown below.

= Ending balance of cash account + bookkeeper error- service charge + interest revenue

= $4,200 + $70 - $25 + $30

= $4,275

The transactions like outstanding checks, the deposit is transit do not affect the book balance. Thus, these transactions are ignored while computing the adjusted book balance.

Hence, the adjusted book balance is $4,275.

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